What is a Personal Accident Insurance Policy?

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Written by PolicyBazaar

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Published : 13 May 2016

Personal accidental insurance is yet to gain as much prominence as your regular life or health insurance policy. However, that does not lessen the importance of investing in one to secure your loan portfolio. If you are the primary earner in the family, buying a personal accident policy is a must. Knowing the way life throws uncertainties, it is imperative that you buy a personal accident policy, which can provide adequate coverage to you in case of permanent disabilities and financially protect your loved ones in case of fatality. But what makes it really good is the fact the personal accidental insurance covers can be bought at reasonable rates in India.

Why do You Need Personal Accident Insurance?

Accidental insurance cover can often fall in a grey area that neither your health insurance nor life insurance covers. An accident can cause total or partial disability, which can lead to your inability to earn and in turn hamper the interests of family members. Also, in such cases your life insurance doesn’t really provide the required coverage. You cannot rely entirely on health insurance as it covers hospitalization charges alone. To keep secured in case of unforeseen circumstances such as these, you should purchase a personal accidental insurance policy.

What does Personal Accident Insurance Policy Cover?

A Personal accidental insurance policy covers both minor and major accidents. Besides covering fatality, it covers total or partial disability. Also, it covers temporary disabilities, due to which you might be restricted from earning for a while. However, your basic cover will not insure you against such temporary disabilities and you are forced to spend a bomb on more expensive policy. A basic coverage usually includes death and permanent total disability.

What Should an Ideal Personal Accident Insurance Policy Cover?

While providing coverage for accidental death and permanent total disability are most important, you must not ignore the possibility of temporary disability, which can stop you from earning regular income. Opt for a cover that provides protection for permanent partial disability as well as temporary total disability. A good personal accident insurance policy not only covers major accidents, but minor accidents like injuries suffered while playing games, a fall down the stairs at workplace, a bike accident leading to factures, etc. too.

Does the Age Factor Determine the Premium for Personal Accident Insurance Policy Cover?

This query is extremely common, since your ideal life or health insurance premiums vary with age. However, personal accidental insurance premiums do not depend on the age and remain the same across all age groups. However, it takes into account your income and your profession. If you are involved in high-risk occupations like sports trainers engaged in adventure sports, army or air force employees and off-shore workers, to name a few, chances are high that you may face exclusions from certain insurance providers.

What are the Benefits of Taking Personal Accident Insurance Policy?

It is always for the benefit of your family members and your own self to have a safety net to battle any cases of unprecedented and unfortunate events. The biggest advantage of buying a personal accidental insurance policy is the security of your family, especially if you have dependents like young children or aging parents to support. Also, investing in a basic personal accidental insurance policy is way cheaper than buying a term life insurance cover.

There are a few important factors associated with personal accident insurance policy that you must be aware of before you buy one: A personal accidental insurance policy does not provide you with any tax benefits.

A group personal accidental insurance policy usually does not provide the same benefits as an individual coverage would, so check your terms and conditions and buy the one that provides adequate coverage. For personal accidental insurance, the insurance company will always cross check the accuracy of the events leading to the accident. Discrepancies and false information can lead to the rejection of the claim.

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